Impacts of interest rate hikes on the consumption of households with a mortgage Staff analytical note 2024-14 Panagiotis Bouras, Joaquín Saldain, Xing Guo, Thomas Michael Pugh, Maria teNyenhuis We assess how much the recent rate-hike cycle has and will affect mortgage borrowers' consumption through its impacts on mortgage payments. Our analysis provides insights into the effects of changes in monetary policy on the consumption of mortgage borrowers. Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D1, D13, E, E2, E21, G, G5 Research Theme(s): Financial system, Household and business credit, Monetary policy, Monetary policy framework and transmission
June 17, 2024 CFEC Meeting (June 17, 2024) Content Type(s): Meetings Source(s): Canadian Foreign Exchange Committee
June 17, 2024 Significant adverse impact This supervisory policy provides an overview of what the Bank of Canada will consider when determining whether a “significant adverse impact” is occurring or has occurred. Content Type(s): Retail payments supervision materials, Supervisory policies Subject(s): Retail payments supervision, Enforcement, Supervision
June 17, 2024 Roles and Responsibilities of the Executive Director and Managing Director This supervisory policy outlines the roles of the Executive Director of Payments, Supervision and Oversight and the Managing Director of Supervision. It also describes their responsibilities related to the Bank of Canada’s retail payments supervision mandate. Content Type(s): Retail payments supervision materials, Supervisory policies Subject(s): Retail payments supervision, Enforcement, Registration, Supervision
June 17, 2024 Issuing public notice of decisions This supervisory policy provides details on the Bank of Canada’s issuing of public notice for certain retail payments supervision and prescribed review decisions. Content Type(s): Retail payments supervision materials, Supervisory policies Subject(s): Retail payments supervision, Enforcement, Registration
Non-Parametric Identification and Testing of Quantal Response Equilibrium Staff working paper 2024-24 Johannes Hoelzemann, Ryan Webb, Erhao Xie We show that the utility function and the error distribution are non-parametrically over-identified under Quantal Response Equilibrium (QRE). This leads to a simple test for QRE. We illustrate our method in a Monte Carlo exercise and a laboratory experiment. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C14, C5, C57, C9, C92 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Economic models
June 17, 2024 Enforcement tools This supervisory policy lists the enforcement tools the Bank could use if enforcement action is needed against individuals, entities and payment service providers. Content Type(s): Retail payments supervision materials, Supervisory policies Subject(s): Retail payments supervision, Enforcement, Registration
Demand for Canadian Banknotes from International Travel: Indirect Evidence from the COVID-19 Pandemic Staff working paper 2024-23 Hongyu Xiao This study uses the COVID-19 travel restrictions to estimate foreign demand for Canadian banknotes. It reveals that international visitors accounted for about 10% of all $100 CAD notes in circulation pre-pandemic, with each visitor carrying an average of $165 in hundred-dollar bills. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E41, E42, E5, E58, F, F2, F22 Research Theme(s): Money and payments, Cash and bank notes, Structural challenges, International trade, finance and competitiveness